Some of you may be considering whether Forever 8 is the right fit for you and your business. That’s why in this week’s blog post, we wanted to detail our decision-making process and what we look for in a business, so you can easily determine whether Forever 8 is the right fit for you!
Is My Business a Good Fit for Forever 8?
Some of you may be considering whether Forever 8 is the right fit for you and your business.
That’s why in this week’s blog post, we wanted to detail our decision-making process and what we look for in a business, so you can easily determine whether Forever 8 is the right fit for you!
To begin, we are going to discuss what it looks like to be a good fit for Forever 8. Our main goal is to help your businesses grow, so we are looking to partner with entrepreneurs who are enthusiastic and passionate about their business and products. If your business is on an upswing and growing, we want to be by your side to help fund and support sustained growth.
The first step in this process is to submit information about your business to us. Our team gets to work reviewing your business right away. If approved, we can usually get you a term sheet the same week! We do not consider your personal credit when making a decision and, instead, analyze your business performance and projections.
Before applying, you should check to see if you meet the following criteria and if we’d be the best partner for you: you have been averaging a minimum monthly revenue of $10,000 consistently for at least 3 months, your business is incorporated, and you are an e-commerce or DTC company. If your business covers these, your business is the perfect partner for Forever 8!
Now, we are going to answer the question of why Forever 8 would not be a good fit for you and your business.
The primary value to our capital is that it frees cash flow to be invested in growing your business. When we enter into an agreement, we purchase all of your on-hand inventory, resulting in an immediate payment to you. This can be a great opportunity to bolster advertising efforts, launch a new product, hire a new employee, or snag a new office. Since Forever 8 also funds your inventory re-orders, all of your net proceeds from your product sales is investable and can be put toward further growing your business. Forever 8 is usually not the best funding option for entrepreneurs who do not have a clear vision to grow their business.
While we have a number of ways that we can engage exciting product brands, there are a few common denominators underlying the opportunities that we decline. Since our mission is to help e-commerce businesses grow, Forever 8 does not generally fund a brand with stagnant or declining sales. Forever 8 is also looking for specific monthly sales volumes. While we may tell a business to wait for Forever 8 funding until their sales have grown, we may sometimes also tap into our network and offer a referral to an e-commerce consultant or service if we think the brand is close to getting over the hump and almost a Forever 8 funding candidate. Finally, there is the circumstance where your margins are simply too tight, our funding and cost of capital would constrain you too much. Our ideal candidate has margins >20%, and can trade-off a bit of margin for growth in sales. As your partner, we try to analyze a business putting ourself in your shoes. We want to maintain a compelling value proposition, because we want to know that you remain passionate and engaged in growing your business.
If your business does not qualify for Forever 8 funding, some funding alternatives, such as banks, and credit facilities, can be found in our blog post “Find the Right Funding Solution for You!”
However, if you are an entrepreneur that eats, breathes, and lives your product but don’t yet meet our criteria, we want to get to know you! We’re always ready and excited to bring on more partners!
Until next time, let us know if you have any questions or comments below!
Forever 8 recoups our investment (plus a small fee) as you sell. Take longer to sell than anticipated? No problem, we will work with you to ensure that we are both in alignment. Sell faster than anticipated? Great, our fees will be lower and we can order you more inventory to keep pace with your demand.
We are a partner. We aren’t here to offer quick bridge loans. Instead, we work together for at least a year, funding 100% of your inventory needs.